California Supreme Court
Frances Harris, Petitioners v. the Superior Court of Los Angeles County, Respondent; Liberty Mutual…
December 29, 201153 Cal. 4th 170
Summary
The court held that claims adjusters cannot be categorically classified as nonexempt production workers under the administrative exemption. Courts must apply the specific statutory, wage-order, and incorporated regulatory language to the particular facts, considering both the qualitative and quantitative components of the directly related test. The court reversed and remanded because the Court of Appeal used the administrative/production dichotomy as a dispositive rule rather than applying the governing enactments.